NT NETWORK
PANAJI
While builders and brokers in Maharashtra are rushing to get their projects registered under the Real Estate Regulation Authority, Goa has been dragging its feet on implementation of the Real Estate (Regulation and Development) Act.
On June 1, the government appointed urban development secretary Sudhir Mahajan as the RERA regulator. However, progress since then has been slow as neither have RERA rules been framed nor a regulatory authority been constituted.
Stakeholders in Goa’s real estate sector have also not been consulted for framing RERA rules, and indications are that implementation of RERA is likely to be delayed.
In Maharashtra, realty companies and brokers have been rushing to get their projects registered under RERA before the July 31 deadline. Maharashtra has been the first state to frame rules and appoint an interim authority.
However, most other states have framed and notified their rules. Goa is one of the laggard states with the deadline looking stretched.
RERA in Goa is looked after by the urban development department which officials said has been in the process of finalising rules in line with the central act. Once rules are notified builders are expected to register their ongoing projects with the RERA authority within a period of 90 days.
Several local builders said that they are just awaiting the rules because it will reveal the extent of their obligations to buyers.
The act came into effect from May 1 2017. A far-reaching law it seeks to protect the interests of homebuyers from unscrupulous builders.
Goa’s builders are largely in favour of the RERA as it is expected to increase buyer’s trust in housing projects and make the industry organised. The RERA aims at transparency in the housing sector. Real estate builders and brokers cannot operate until they register with the authority. They are expected to submit project plan, layout, and design to the authority and also provide it to customers. Changes in project can be done only after getting consent from two-third of the buyers. Developers have to deposit 70 per cent of funds collected from buyers in a separate account in case of new projects so that funds are not diverted to other projects.
The purpose of RERA is to cut down on delay in housing projects and look after the interests of the buyers.
As per the act, a state must have a three-member authority or in the absence of an authority can have an interim regulator.
But RERA rules have to be framed for industry stakeholders.
